Individual account


Hi all,
Help needed with.
Amazon says I made a mistake when I signed up for individual account. And I should be a business I have only managed to generate £1135 in revenue so far. I had a limit of €15.000 until forming a company.


No, if you are selling for profit (not your own unused/unwanted items) then you should have been registered as a business/sole trader from the outset.


Incorrect.As soon as you sell 1 item for profit you are a business,self employed or company, not an individual.


I see thanks. So the only option is to form a company then.


you should have already done that if you are selling for a profit - HMRC regularly monitor all selling platforms for sellers who haven’t registered and declared income.

Your profile shows you signed up in 2019 so you will need to contact HMRC asap if you have sales and income to declare


No you do not need to form a compan, but you do need to register as a Business.
You can be classed as a Sole-trader, Limited Company, or Partnership (there may be other options, but am not aware).


My friend is selling private label on individual account.

She has been trading since 2015.

I only made about £200 profit so far as my products were expensive to source.
HMRC only requires to register once you hit the treshold for £1000 in net profit.

Question there is no way back to individual?


never go on what a friend tells you.

HMRC only require you to register as self employed when you reach the £1000 limit however, I don’t believe Amazon follow the same process. If you are selling multiple items as New then they require you to sign up as a business rather than a private seller


That was certainly the case when i created my account 18 months ago and i would expect it to be the case now too.


i wonder if its a blanket requirement for all sellers who list as ‘new’ or if they take into account the number of items you list and times it by your selling prices so that they can see you have stock valued over HRMCs required £1000 ?


I don’t think Amazon care about the £1000 in the slightest. Their registration process basically said if you’re buying items to sell then you are a business and we aren’t letting you register until you have the required evidence. So in my case they wouldn’t let me get past a screen without giving them a UTR number.


I signed up around 2016 nothing serious just to resell an item I bought on Amazon as used obviously.

And I did something in 2019.
Then I started selling on Amazon around October of last year without the subscription.

Then mid October I upgraded to the professional account to get the extra benefits of the subscription service.

I also wanted a va to look after some part of my seller account and that is where the verification got triggered it was all fine before.


maybe thats whats triggered it - your intention to sell over 34 items per month ?!


It’s £1000 turnover, not net profit.


which could happen very quickly depending on what you sell


The Professional Selling Plan is not the same as a Business Account
Business sellers can use either the Professional. Plan or the Individual Selling Plan, usually dependent on the volume of sales (financially better as long as you sell a minimum of 33/34 items a month), or if you want to set your own shipping rates.


@JillyB1 Amazon should put your definition of the different selling plans on their home page - you certainly explain it better than they do !!


Thank you all,

Just opened a company along VAT registration.
I know the VAT is only when you hit £85k onwards I just wanted to get it done.